NSW housing approvals remain at record lows
The recent release of the ABS housing data shows that, on an annualised basis, approvals remain at record lows since the GFC, recording yet again the worst performance in the last decade by a long way.
Only 44,675 new dwellings were approved in NSW in the 12 months to January 2024, a far cry from the 90,000 approvals needed in NSW each year.
There needs to be 7,500 approval each month, and January 2024 saw just 2,875 approvals.
Total dwelling approvals in NSW fell by nearly 15 per cent in January, the worst decline of any state. Victoria fell by nearly 10 per cent, and South Australia over seven per cent. Queensland record a rise of over 31 per cent in dwelling approvals.
Urban Taskforce CEO Tom Forrest said in the forthcoming Federal Budget, it is critical that Prime Minister Albanese and Treasurer Chalmers assist the states with building the new homes we so desperately need by supporting housing supply with infrastructure funding.
"The importance of infrastructure funding and delivery is becoming increasingly evident as the cause for the slow rate of approvals."
Forrest said it is the Commonwealth which has opened the doors to a massive wave of post-COVID migration and has benefitted from the taxation revenue generated by the influx of skilled migrants.
"It is the Commonwealth that called the State Premiers together and proposed the National Housing Accord," Forrest said.
"The Federal Budget has been boosted by this immigration as well as the strong performance of minerals prices and the mining export sector. It is the Commonwealth that has the fiscal resources to support infrastructure to drive housing supply so it’s time that the Commonwealth helped out the states with significant funding for infrastructure."
